Correlation Between Infant Bacterial and FlexQube

Can any of the company-specific risk be diversified away by investing in both Infant Bacterial and FlexQube at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Infant Bacterial and FlexQube into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Infant Bacterial Therapeutics and FlexQube AB, you can compare the effects of market volatilities on Infant Bacterial and FlexQube and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Infant Bacterial with a short position of FlexQube. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infant Bacterial and FlexQube.

Diversification Opportunities for Infant Bacterial and FlexQube

-0.51

Correlation Coefficient

Infant Bacterial  FlexQube

Excellent diversification

The 3 months correlation between Infant and FlexQube is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Infant Bacterial Therapeutics and FlexQube AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexQube AB and Infant Bacterial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Infant Bacterial Therapeutics are associated (or correlated) with FlexQube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexQube AB has no effect on the direction of Infant Bacterial i.e., Infant Bacterial and FlexQube go up and down completely randomly.

Pair Corralation between Infant Bacterial and FlexQube

Assuming the 90 days trading horizon Infant Bacterial Therapeutics is expected to under-perform the FlexQube. But the stock apears to be less risky and, when comparing its historical volatility, Infant Bacterial Therapeutics is 1.6 times less risky than FlexQube. The stock trades about -0.01 of its potential returns per unit of risk. The FlexQube AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  698.00  in FlexQube AB on April 24, 2025 and sell it today you would earn a total of  32.00  from holding FlexQube AB or generate 4.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Infant Bacterial Therapeutics  vs.  FlexQube AB

Infant Bacterial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Infant Bacterial Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Infant Bacterial is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

FlexQube AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in FlexQube AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, FlexQube unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Infant Bacterial and FlexQube

The main advantage of trading using opposite Infant Bacterial and FlexQube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infant Bacterial position performs unexpectedly, FlexQube can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FlexQube will offset losses from the drop in FlexQube's long position.

The idea behind Infant Bacterial Therapeutics and FlexQube AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.